President Bola Tinubu has said that Nigeria’s power sector is in a vicious cycle of under-performance and under-investment, especially in transmission, distribution, which the DISCOs need at least two trillion naira recapitalization to jump-start performance in this critical value chain
The President, who disclosed this at the annual Nigeria Electricity Supply Industry Market Participants and Stakeholder Round table in Abuja, decried that ten years after the privatization of the power sector in November 2013, over ninety million Nigerians still lack access to electricity.
He said the DISCOs need at least two trillion naira recapitalization to jump-start performance in this critical value chain.
“The sector has suffered chronic under-investment, especially in transmission and distribution. Many of the successor utilities of the PHCN have failed to meet their performance improvement targets due to technical and financial capacity issues.
“We are in a vicious cycle of under-performance and under-investment and everyone has a different view of which value chain player should be blamed for continued sector malaise. Preliminary analysis shows that DISCOs today are under-capitalized to close to two trillion naira.
“We must facilitate a reorganization and a recapitalization process that brings in new partners and capital to jump-start performance in this critical section of the value chain,” he stated.